Donaldson Impact Investments, in partnership with New York Life Investment Management and not-for-profit developer, Housing Initiative Partnership (HIP), today announced the acquisition of Yorkshire Apartments, a 326-unit garden-style community in the White Oak neighborhood of Silver Spring, Maryland. The acquisition will preserve the high-quality, well-located rental community as attainable housing while providing resident services and contributing to long-term stability.
Yorkshire Apartments will transition from market-rate housing to a mixed-income affordable housing community. This conversion is designed to provide long-term housing stability for working families and residents facing increasing housing costs in Montgomery County. Under this new structure, 50% of the apartment homes will be designated as affordable to households earning up to 60% of the area median income (AMI), while the remaining 50% will remain market-rate.
New York Life Investment Management is the majority investor in the $79.4 million transaction that will widen access to high-quality affordable housing.
“This acquisition demonstrates how progressive public-private partnerships can create meaningful, lasting impact for residents and the community at large while safeguarding quality housing in high-demand markets,” said Kevin H. Smith, Managing Partner for Donaldson Impact Investments. “Yorkshire Apartments allows us to provide families with access to larger apartment homes at attainable rates. At a time when rising development costs, constrained investment activity and recent rent control measures in Montgomery County are limiting housing supply, preserving communities like Yorkshire is paramount.”
The transaction was made possible through Montgomery County’s By-Right Payment in Lieu of Taxes (PILOT) program, which provides long-term tax abatements that support housing affordability. The project is capitalized through a combination of the PILOT structure, market-rate equity provided by New York Life Investment Management and Donaldson Impact Investments, and financing through JP Morgan. JLL served as the selling broker and also assisted in securing debt for Donaldson.
The acquisition is the second investment by Donaldson Impact Investments, underscoring the partners’ shared commitment to preserving long-term workforce housing stability and creating positive economic and social outcomes in communities throughout the region.
“We are facing a housing affordability crisis in the DC region,” said Carlton Einsel, co-founder of Donaldson Impact Investments. “This new acquisition, executed through a shared vision with our incredible partners at New York Life and HIP to provide innovative capital solutions to the affordability crisis, adds critically needed committed affordability to the Montgomery County multifamily housing stock, along with dedicated onsite resident services for all households at Yorkshire Apartments.”
“New York Life Investment Management is proud to support investments that deliver both long-term fundamentals and measurable community impact,” said Kevin M. Smith, Managing Director, New York Life Investment Management. “Yorkshire represents an opportunity to offer housing affordability, sustain housing stock and support residents through a stable, mission-aligned structure.”
HIP will serve as the nonprofit partner and resident services provider, bringing extensive experience in affordable housing operations and community support programs. The partnership will introduce enhanced onsite resident support services aimed at improving quality of life and long-term economic mobility.
“HIP is excited to partner on a project that not only expands access to quality affordable housing, but also invests directly in the well-being and future success of residents,” said Stephanie Prange Proestel, HIP Executive Director. “By pairing safe, high-quality housing with supportive onsite services and community resources, we can help build stronger, more resilient communities. Having a stable home is just the first step to leading a productive and healthy life.”
Yorkshire Apartments also stands apart from traditional affordable housing inventory in the market. The community boasts significantly larger homes with an average apartment size of roughly 1,005 square feet, and will now offer residents modern amenities, community spaces and dedicated resident services. Through an onsite Resident Services Coordinator and property management staff, Yorkshire will provide its residents access to bilingual onsite staff, financial wellness programming, educational resources, food assistance programs, and other supportive services designed to help families thrive and build a stronger future.
The community welcomed its first residents under the new affordable model starting June 1st.